The real estate auction is another excellent tool for marketing real estate.

The real estate auction has had a bad connotation because of the sheriff foreclosure sales. However, the auction sales format goes back many centuries. This format is used for financial instruments, art treasures, items that are unique and difficult to price.

Over the years, the auction format has been used very successfully to market real estate and will continue to be an excellent vehicle to market property. The perception that only difficult properties or distress properties are good auction candidates is false; in fact, premier desirable properties are excellent candidates for the auction format.

The perception that the property must be sold to the highest bidder even if the seller does not receive the purchase price that the seller desires is false.

The following is an introduction to the various formats available to sellers in the auction sale:

TYPES OF SALES

Absolute Sale--Without Reserve: The property is sold to the highest bidder regardless of price, without reserve or minimum bid.

With Minimum Bid: The minimum bid is published and if the highest bidder meets that minimum bid price the property is sold.

With Reserve--No Stated Price: The property is sold to the highest bidder, but the seller reserves the right to accept or reject the bid either at the auction or within a stipulated time period.

Types of Auctions

Single Seller/Single Stand-Alone Auction: is ideal for property that has a very specialized market or high profile.

Single Seller/Multiple Property Auction (Portfolio Sale): allows for an offering at a single location and time, or at regional locations at different times, for a single owner offering multiple properties.

Multiple Seller/Multiple Property Auction: allows multiple sellers to pool their properties, creating a larger auction event. For a seller who has flexibility in terms of time, this format provides an economy of scale, allowing inclusion of smaller properties for attractive advertising contributions and brings together buyers for various properties to the same event in a synergistic way.

Sealed Bid Offerings: allows bidders to submit bids on pre-approved contract forms and the seller can accept or reject an offer.

Sealed Bid Convertible: begins with a Sealed Bid program to identify the market segments and judge the depth of market. At sufficient market depths, the format may be converted to open outcry formats.

The RESG Companies is equipped to guide and perform an auction sale for its clients.

If you are interest in pursuing the possibility that your property is an auction candidate, we w ill be happy to perform a What-if analysis conventional sale vs. an auction.
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